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Globe Life Financial Strength

: 4 (As of Jun. 2022)
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Globe Life has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Globe Life's Interest Coverage for the quarter that ended in Jun. 2022 was 10.94. Globe Life's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.41. Altman Z-Score does not apply to banks and insurance companies.


Globe Life Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Globe Life's Interest Expense for the months ended in Jun. 2022 was $-22 Mil. Its Operating Income for the months ended in Jun. 2022 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $1,627 Mil.

Globe Life's Interest Coverage for the quarter that ended in Jun. 2022 is

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Globe Life's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(495.126 + 1627.143) / 5170.432
=0.41

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Altman Z-Score does not apply to banks and insurance companies.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Globe Life  (NYSE:GL) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Globe Life has the Financial Strength Rank of 4.


Globe Life Financial Strength Related Terms

Thank you for viewing the detailed overview of Globe Life's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Globe Life Business Description

Globe Life logo
Traded in Other Exchanges
Address
3700 South Stonebridge Drive, McKinney, TX, USA, 75070
Globe Life Inc is an insurance holding company. It provides a variety of life and supplemental health insurance products and annuities to a broad base of customers. The company's core operations are organized into four reportable segments: life insurance, supplemental health insurance, annuities, and investments. Investment activities, conducted by the investment segment, focus on seeking investments with a yield and term appropriate to support the insurance product obligations. These investments generally consist of fixed maturities and, over the long term, the expected yields are considered when setting insurance premium rates and product profitability expectations.
Executives
Tyler Christopher Kyle officer: EVP & Chief Info. Officer 3700 S. STONEBRIDGE DRIVE MCKINNEY TX 75070
Kalmbach Thomas Peter officer: EVP & Chief Actuary 3700 S. STONEBRIDGE DRIVE MCKINNEY TX 75070
Hensley Robert Edward officer: EVP & Chief Investment Officer 3700 S. STONEBRIDGE DRIVE MCKINNEY TX 75070
Zorn Rebecca E officer: EVP & Chief Talent Officer 3700 S. STONEBRIDGE DRIVE MCKINNEY TX 75070
Moore Christopher Todd officer: Corp.SVP, Assoc.Counsel & Sec 3700 SOUTH STONEBRIDGE DRIVE MCKINNEY TX 75070
Rogers John Henry Jr other: Officer of Principal Sub 1433 ROLLING HILLS CELINA TX 75009
Mcpartland James Eric officer: EVP &Chief Information Officer 2345 TIMBERLAKE CIRCLE ALLEN TX 75013
Matson Kenneth J other: Officer of Principal Sub. FAMILY HERITAGE LIFE POST OFFICE BOX 470608 CLEVELAND OH 44147-0608
Carlson David Kendall other: Officer of Principal Sub. UNITED AMERICAN INSURANCE COMPANY 3700 SOUTH STONEBRIDGE DRIVE MCKINNEY TX 75070
Henrie Michael Shane officer: SVP & Chief Accounting Officer UNITED AMERICAN INSURANCE COMPANY 3700 SOUTH STONEBRIDGE DRIVE MCKINNEY TX 75070
Majors Michael Clay officer: EVP - Investor Rel. & Admin. UNITED AMERICAN INSURANCE COMPANY 3700 SOUTH STONEBRIDGE DRIVE MCKINNEY TX 75070
Svoboda Frank M officer: EVP & CFO 3340 PECAN HOLLOW CT GRAPEVINE TX 76051
Hutchison Larry M director, officer: Co-Chaiman & CEO P O BOX 8080 MCKINNEY TX 75010
Addison Linda director 3700 S. STONEBRIDGE DRIVE MCKINNEY TX 75070
Alexander Marilyn A director 565 DUNNEGAN DRIVE LAGUNA BEACH CA 92651
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